Is electricity more expensive in Spain than in Europe?

As we wrote a while ago, in our article: Which are the cheapest cities to live in Spain? Spanish electricity prices used to be more expensive than the rest of Europe. Since 2022, this is not the case anymore.

The electricity price in Spain is 193 €/MWh as of the 19th of September 2022 vs 175.33 €/MWh as of the 26th of August 2022 at the peak of the energy crisis.

Does it mean that the price in Spain is cheaper than in other European countries? As of August 2022, at the peak of the energy crisis, the clear answer is yes! Not one country had a cheaper rate!

Which country has the cheapest electricity in Europe at the peak of the crisis?

At the peak of the crisis this summer, on the 26th of August 2022, here was the situation:

The electricity price in Spain was 175 €/MWh and here is the alphabetical ranking of all the European electricity prices and comparison vs Spain.

• The electricity price in Austria was 707 €/MWh, 403% of the price of electricity in Spain.
• The electricity price in Belgium was 700 €/MWh, 399% of the price of electricity in Spain.
• The electricity price in Bulgaria was 402 €/MWh, 229% of the price of electricity in Spain.
• The electricity price in Croatia was 708 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Czechia was 703 €/MWh, 401% of the price of electricity in Spain.
• The electricity price in Denmark was 699 €/MWh, 399% of the price of electricity in Spain.
• The electricity price in Estonia was 468 €/MWh, 267% of the price of electricity in Spain.
• The electricity price in Finland was 468 €/MWh, 267% of the price of electricity in Spain.
• The electricity price in France was 706 €/MWh, 403% of the price of electricity in Spain.
• The electricity price in Greece was 402 €/MWh, 229% of the price of electricity in Spain.
• The electricity price in Germany was 682 €/MWh, 389% of the price of electricity in Spain.
• The electricity price in Hungary was 708 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Italy was 688 €/MWh, 393% of the price of electricity in Spain.
• The electricity price in Lithuania was 565 €/MWh, 323% of the price of electricity in Spain.
• The electricity price in Latvia was 563 €/MWh, 321% of the price of electricity in Spain.
• The electricity price in the Netherlands was 693 €/MWh, 396% of the price of electricity in Spain.
• The electricity price in Norway was 384 €/MWh, 219% of the price of electricity in Spain.
• The electricity price in Poland was 352 €/MWh, 201% of the price of electricity in Spain.
• The electricity price in Portugal was 175 €/MWh, 100% of the price of electricity in Spain.
• The electricity price in Romania was 709 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Serbia was 684 €/MWh, 391% of the price of electricity in Spain.
• The electricity price in Slovakia was 708 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Slovenia was 708 €/MWh, 404% of the price of electricity in Spain.
• The electricity price in Sweden was 211 €/MWh, 121% of the price of electricity in Spain.
• The electricity price in the United Kingdom was 636 €/MWh, 363% of the price of electricity in Spain.

Source

Electricity prices in Europe in €/MWh on 26 August

This was nearly the peak of electricity pricing this summer. Have a look at our interactive chart, you can click on any country.

Comparison of electricity prices in Europe vs Spain on 26 August

In this chart, Spain’s value is 100% (light green) and all the other countries are relative to Spain, i.e. a number of 200% means that the price is twice the price of Spain. This will help you to know how much you would save on your utilities, (gas pricing is close to electricity pricing) if you live in Spain. Have a look at our interactive chart, you can click on any country.

What are the current Electricity prices in Europe as of mid-September?

Electricity prices in Europe in €/MWh on 19th September – interactive chart prices in Europe in €/MWh

This was nearly the peak of electricity pricing this summer.

Click on any country

Comparison of electricity prices in Europe vs Spain on 19th September

In this chart, Spain’s value is 100% (light green) and all the other countries are relative to Spain.

The electricity price in Spain was 193.03 €/MWh on the 19th of September 2022. A little bit higher than at the peak of August, maybe as renewable sources were less abundant on that day.

Here are the Electricity prices for all the European countries on the 19th of September 2022 sorted alphabetically:

• The electricity price in Austria was 284 €/MWh, 147% of the price of electricity in Spain.
• The electricity price in Belgium was 274 €/MWh, 142% of the price of electricity in Spain.
• The electricity price in Bulgaria was 279 €/MWh, 145% of the price of electricity in Spain.
• The electricity price in Croatia was 285 €/MWh, 148% of the price of electricity in Spain.
• The electricity price in Czechia was 268 €/MWh, 139% of the price of electricity in Spain.
• The electricity price in Denmark was 261 €/MWh, 136% of the price of electricity in Spain.
• The electricity price in Estonia was 177 €/MWh, 92% of the price of electricity in Spain.
• The electricity price in Finland was 100 €/MWh, 52% of the price of electricity in Spain.
• The electricity price in France was 315 €/MWh, 164% of the price of electricity in Spain.
• The electricity price in Germany was 249 €/MWh, 129% of the price of electricity in Spain.
• The electricity price in Greece was 376 €/MWh, 195% of the price of electricity in Spain.
• The electricity price in Hungary was 276 €/MWh, 143% of the price of electricity in Spain.
• The electricity price in Italy was 446 €/MWh, 231% of the price of electricity in Spain.
• The electricity price in Lithuania was 275 €/MWh, 143% of the price of electricity in Spain.
• The electricity price in Latvia was 275 €/MWh, 143% of the price of electricity in Spain.
• The electricity price in the Netherlands was 266 €/MWh, 138% of the price of electricity in Spain.
• The electricity price in Norway was 153 €/MWh, 79% of the price of electricity in Spain.
• The electricity price in Poland was 157 €/MWh, 81% of the price of electricity in Spain.
• The electricity price in Portugal was 193 €/MWh, 100% of the price of electricity in Spain.
• The electricity price in Romania was 279 €/MWh, 145% of the price of electricity in Spain.
• The electricity price in Serbia was 306 €/MWh, 159% of the price of electricity in Spain.
• The electricity price in Slovenia was 289 €/MWh, 150% of the price of electricity in Spain.
• The electricity price in Slovakia was 274 €/MWh, 142% of the price of electricity in Spain.
• The electricity price in Sweden was 102 €/MWh, 53% of the price of electricity in Spain.
• The electricity price in Switzerland was 317 €/MWh, 165% of the price of electricity in Spain.

Source

As you can see, the situation is back to a more stable situation nearly everywhere in Europe, although pricing remains expensive over the last 2 years. Interesting to note, Spain, keeps its position as one of the countries with the lowest prices for electricity in Europe.

How much will you save on your utilities by living in Spain?

A family of four people will consume around 4000kwh.

Of course, owning a pool, AC or hot boiler working with electricity could have an impact on your consumption.

Don’t forget either that you have to add transport, distribution and taxes, to the price of electricity to have the full amount of your Electricity invoice.

You could save about €2,000 a year by living in Spain

if prices stay on the high side of the range of last year.

The last line on your electricity bill as in Spain could be a monthly cost to have a specific power.

So, to sum up, you could save between 10% to up to 75% of your utility bills by living in Spain rather than elsewhere in Europe. Check the section just above this one “Comparison of electricity prices in Europe vs Spain on 19th September” to have precise data on electricity costs for all European countries so you can calculate your actual savings.

Why are electricity prices in Spain lower than in Europe?

Unlike other European partners, Spain does not depend on Russian energy imports and has a guaranteed supply; in fact, they are exporting electricity, natural gas and oil products.

So, there are many reasons why electricity prices are competitive vs other European countries:

• As of 2022, Spain has close to 40% of all its energy consumption coming from renewable.

Source: Red Electrica Corporation

• Check the daily report on how electricity is produced in Spain. Data are from “Red Electrica Corporation” the company managing energy distribution in Spain.

Source: Red Electrica Corporation

• Spain has the biggest infrastructure of LNG terminals in Europe, with 40% of the total volume, and Gas could be an energy source to produce electricity.

Spain has the biggest LNG terminal infrastructure in Europe. Source: The Economist.

• Spain’s target is to be on 100% renewable energy in 2050.
• Other energy sources such as fossil fuels have more stable prices in Spain
• And last but not least, in May 2022, Spain implemented a unique system by capping the price of gas sold to the electricity system, the electricity bill will be lower for all citizens, “families, households, small and medium-sized enterprises, the self-employed and, very importantly, industry

In two words, the electricity supply in Spain is much more stable than in many European countries.

France had supply issues with as many as 50% of its nuclear power plants while we all know that Germany relied on Russian gas for which supply was interrupted.

If you want to read more, an interesting site is the site of European Commission on Electricity prices and the world energy report 2022 written BP.

Long term, Spain intends to continue to improve its infrastructure with the +SE Plan that will reinforce energy infrastructures to boost gas exports to France, Italy and the rest of the EU.

The new Energy plan “Plan + Seguridad Energética” of the Spanish government

The Council of Ministers approved the new Energy Security Plan in October 2022. This plan has many goals:

• • increase the protection of the population against the price crisis caused by the war in Ukraine,
  • reduce the country’s gas consumption by between 5.1% and 13.5%, improve energy autonomy and increase the competitiveness of the economy,
  • increase energy exports, acting in solidarity with the rest of the European Union (EU).

The Plan+ SE contains 73 complementary and synergetic measures, structured in six large blocks:

• energy saving and efficiency;
• boosting the energy transition;
• protection of vulnerable consumers,
• households and businesses;
• fiscal measures;
• strategic autonomy;
• and solidarity with the rest of the European partners.

Some of these measures have already been approved or launched in previous weeks, such as the reduction of VAT on natural gas from 21% to 5% or the reform of the regulated electricity tariff (PVPC) in order to reduce its volatility. Other measures require a legislative review (to be done soon) or are focused on the medium and long term.

Read more: Plan + Seguridad Energética

What is the average utility bill in Spain?

An average family of 4 people will consume 4,000 kWh per year. Consumption by private persons is only accounting for 36% of the electric demand in Spain.

What is the cheapest time to use electricity in Spain?

Consumption is divided into three time periods (peak, flat rate and off-peak).

The peak period is the most expensive, from 10 am to 2 pm and from 6 pm to 10 pm, Monday to Friday, except on public holidays.

The flat rate period is cheaper and is from 8 am to 10 am and from 2 pm to 6 pm and from 10 pm to 6 am.

How much does it cost to run an AC in Spain in 2022?

A good AC will consume about 1000 Wh, which means that it won’t cost a lot if you use it smartly.

How can you save on your electricity bill?

• Consume at the best time of the day when demand is off-peak. (see above for more)
• Check all your electrical appliances and check how much they consume on a yearly basis. Maybe changing your fridge for a new more efficient one?
• Check your heating and cooling systems to have Energy efficient ones.
• Change your lamps to LED lamps as they consume much less.
• Turn off electrical appliances if you don’t use them and don’t let them on “standby”.

Is it too late to invest in solar panels?

If you produce your own electricity (and eventually store it with a battery), you will save a lot and have a nice return on your investment. The Spanish government gives another boost to solar roofs, energy communities and self-consumption, with 500 million euros and more facilities in its new Energy plan “Plan + Energy” (see above for more). It will also speed up the processing of renewable projects and plans to modify the current 2021-2016 Electricity Plan to make strategic projects viable and launch a new 2024-2029 Plan to integrate more renewables.

How much does it cost to install solar panels?

For a household consuming 4000kw per year, you should count about €6500. If you want to add a battery of 5kw, you will have to add about €3000. So, your investment for the solar panels should be reimbursed in less than 6 years depending on where you live.

FAQ on electricity costs in Spain

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Stéphane

Senior analyst and strategist at HTBIS

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